Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Gold/Mining/Energy : Enron - Natural Gas Industry -- Ignore unavailable to you. Want to Upgrade?

To: hlpinout who wrote (708)	11/26/2001 9:10:02 PM
From: hlpinout	Read Replies (1) \| Respond to of 1433

November 24, 2001 03:38 Dynegy Says Work Continues on Enron Acquisition Deal By Nelson Antosh, Houston Chronicle Nov. 24--Shares of Enron dropped another 6 percent Friday, as the investment community fretted that the acquisition price for the company by Dynegy may be reduced, or the deal might not go through at all. The two sides didn't offer anything new for worried investors. Dynegy stuck to its Wednesday statement that it is working to accelerate regulatory approvals in order to complete the deal as previously announced. Dynegy is continuing to take a close look at Enron as part of the due diligence process, which will involve careful study of Enron's books, Dynegy spokesman John Sousa said on Friday. On Wednesday, Dynegy Chief Executive Chuck Watson said he was encouraged that Enron had closed a $450 million credit security and received an extension on a $690 million IOU. Dynegy remains optimistic that the deal can be done, said a source close to the company. Enron spokeswoman Karen Denne said she was unaware of any meetings planned between top executives of the two companies this weekend, which could signal alterations to the deal. Enron's stock, which was the most active on the New York Stock Exchange on Friday, dropped 30 cents to close at $4.71 per share. This made it the worst performing stock in the Standard & Poor's 500 index for the week, with a loss of 48 percent for the holiday-shortened period. It was a bad week for a stock that has come down from a 52-week high of $84.87 on Dec. 28 last year. For the year to date, Enron's price is off 94 percent. More than 40 million shares traded hands Friday. On Wednesday, 116 million shares were traded. Analyst Ron Barone of UBS Warburg said the odds of a reduced exchange ratio in the deal were rising. As announced Nov. 9, Dynegy would exchange 0.2685 of its shares for each share of Enron. According to Barone, 0.15 might be more appropriate. Traders also speculated that Enron might need to issue more stock to stabilize its finances, which would dilute the shares currently outstanding. Dynegy's stock gained 64 cents to close Friday at $40.40 per share, on trading of 2.1 million shares. For the year to date, Dynegy's price is off 28 percent. -----